tag:blogger.com,1999:blog-11719208.post9113109282059620315..comments2023-11-05T04:36:14.223-08:00Comments on The Mess That Greenspan Made: Was there a "global savings glut" in 1986?Timhttp://www.blogger.com/profile/16530974968126497397noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-11719208.post-45416895630723357772010-02-11T09:44:38.263-08:002010-02-11T09:44:38.263-08:00Perhaps there wasn't a "glut" of sav...Perhaps there wasn't a "glut" of savings, but people have always had that much savings. People always have money that they want to save or invest.<br /><br />Perhaps the Fed Funds rate being so close to zero was giving all of those people a gigantic middle finger, forcing them to seek out other avenues for a return that would beat inflation. Avenues like CDOs composed of subprime mortgages...AJhttps://www.blogger.com/profile/14159764843937350178noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-23014717531153163272010-02-11T08:36:46.895-08:002010-02-11T08:36:46.895-08:00There was a global savings surfeit, but it was cau...There was a global savings surfeit, but it was caused by world central bank printing. Forced savings is a concept central bankers refuse to accept, but reality does not go away simply because someone refuses to accept it.<br /><br />Central banks complain about too much savings (paradox of thrift), and then make the problem worse by adding forced savings to the mix. Asset prices become leveraged bubbles as a result of forced savings creating a surfeit of savings.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-6374465415633601082010-02-10T19:11:40.532-08:002010-02-10T19:11:40.532-08:00Good question. The H.15 data only goes back to 197...Good question. The H.15 data only goes back to 1971 for mortgages but this is probably available somewhere. Off the top of my head, I don't know where but it's probably worth a quick search.Timhttps://www.blogger.com/profile/16530974968126497397noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-22979550011995839512010-02-10T18:31:37.020-08:002010-02-10T18:31:37.020-08:00Nicely done, as usual. A real eye-opener re: the p...Nicely done, as usual. A real eye-opener re: the pre-1990 era. What about prior to 1971? Any idea what the relationship was, say, back in the 1950s when the Fed funds rate was also close to zero?Ted S.noreply@blogger.comtag:blogger.com,1999:blog-11719208.post-66192327670754166352010-02-10T15:52:01.470-08:002010-02-10T15:52:01.470-08:00The Fed's 200 PhD economists couldn't figu...The Fed's 200 PhD economists couldn't figure this one out???Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-5746997229694334252010-02-10T15:19:42.327-08:002010-02-10T15:19:42.327-08:00Thanks for this post Tim. This obviously shows at...Thanks for this post Tim. This obviously shows at least what you say is carelessness by those in charge.<br /><br />However, more likely, it could also be ideology blinding them into even looking at something like this.Adam2https://www.blogger.com/profile/03710514839937913226noreply@blogger.com